http://money.cnn.com/gallery/smallbusiness/2014/04/21/factories-plant-manufacturing/index.html?iid=Lead
American manufacturing has been going overseas for over past two decades to reduce the costs. High-tech systems are doing more and more work for people. Therefore it has been cruel for workers in manufacturing industry. But now it is going to change.
Stuart Lichter, president of Industrial Realty Group, said "demand for closed factories has picked up since the recession," which means American companies are going to bring production back home. This movement will inject new blood to thousands of closed factories and greatly boost U.S. job market then make the domestic economy be better.
These are the good paying jobs that we need in this country to generate the 4 percent GDP growth we are looking for. Minimum wage job creation does not move the needle, but middle class jobs can make a big difference.
ReplyDeleteKinda afraid that this might just be temporary, since it creates lots of jobs for the unemployed very quickly. Yet I find this as a good opportunity for people who seek jobs for economic reasons (or something else) and their expenditure will increase at least briefly for a while too, which is positive for the economy as well.
ReplyDeleteStill do not know really how many factories or jobs will actually be created. No matter what the demand, the big time companies such as Nike, I believe will continue to outsource its labor to foreign countries just because it is still cheaper.
ReplyDeleteI think this could create some new jobs however I don't think it would be a substantial amount. Even though we have seen manufacturing prices increase in Asia the total cost of outsourcing is much lower than producing here in the United States. It is because of that corporations will continue to do much over their business over seas. The only way to get large scale manufacturing to increase here domestically would be to make the incentives to do so better. This could be done through numerous tax breaks and federal funding.
ReplyDeleteI believe this small step is also affected by the rising costs of production found overseas. The rising wages in developing countries are making companies reconsider transportation costs; making the United States more attractive as those transportation costs would decrease.
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